The cryptocurrency market has continued its positive performance this week, with Bitcoin and Ether breaking above key resistance areas.

uBitcoin hit the $121k mark for the first time since August, while Ether topped the $4,500 resistance level.

Ether could now rally to a new all-time high amid growing whale demand for the cryptocurrency. 

Ether, the second-largest cryptocurrency by market cap, is trading above $4,400 per coin after adding 2.5% to its value in the last 24 hours.

The coin briefly reached the $4,500 mark a few hours ago but has since declined slightly to trade at $4,484.

The positive performance comes as whales have increased their buying pressure in recent weeks, following Ether’s dip in price.

Data obtained from CryptoQuant revealed that since September 18, whales (investors with a balance of 10K-100K ETH) have increased their collective holdings by 840k ETH.

The whales continue to buy even during the dip, boosting confidence in Ether’s price discovery over the last two weeks. 

Additionally, accumulation addresses (wallets with no selling activity) added a record 5.6 million ETH to their balances in September.

This implies that accumulation addresses have set a new monthly buying record for the third consecutive month despite Ether’s poor performance in recent weeks. 

Finally, institutional demand for Ether has returned following weeks of outflow. From Monday to Wednesday, US spot ETH exchange-traded funds (ETFs) recorded net inflows of about $755.2 million. 

On the derivatives side, Ether’s Open Interest (OI) remains poor despite the price improvement over the past seven days. However, traders are becoming more active in the market, with a 280K ETH jump in the metric recorded on Thursday. 

The ETH/USD 4-hour chart has switched bullish after Ether added 13% to its value over the last seven days.

The coin recorded $129.9 million in futures liquidations over the past 24 hours, with short traders experiencing heavy losses. 

The short liquidations were a result of Ether crossing above the 50-day Simple Moving Average (SMA). By breaking above the $4,500 resistance level, Ether is setting up for further gains and could rally towards an all-time high.

However, Ether must overcome the $4,835 resistance level before it can top the $5k psychological mark for the first time in its history. 

The MACD lines are above the neutral zone, suggesting a bullish run. The RSI of 74 also shows that ETH could enter the overbought region if the bullish trend continues.

Ether’s momentum indicators need to remain bullish to allow it to rally to a new all-time high above $4,900. 

However, failure to top the $4,835 resistance level in the near term could see Ether retest the support and TLQ level created at $4,117. This support level will likely hold in the near term, unless the broader market switches bearish.

The post Ether hits $4,500 amid rising whale demand: check forecast appeared first on Invezz

Bitcoin price in Telegram @btc_price_every_hour

246 +